Warehoused Loan Write-down Request

L

LicketySplit

Registered User
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13
Hi

I am contemplating writing to AIB to seek a further write-down on the warehoused value of my loan (or even a write-off). I am looking to understand if anyone else has done this and what sort of reception did it receive from the bank.

I currently have an outstanding warehoused loan of €150k and a base loan of €250k. As the base loan terms were amended as part of the agreement, my mortgage term now extends beyond my retirement age my concern is around ability to pay the warehoused loan value when the time comes.

Does anyone have any advice on the best approach to take with the bank in requesting a write-down/write-off of the warehoused loan?

Thanks
L
 
On what basis should they give you a write-down?

You got a very generous split.
AIB don't charge interest on it.
They don't review it.
They will top up any capital you pay against the warehouse.

And now you want them to write it off?

Sorry, but it makes no sense.

Brendan
 
AIB is unusual in that the warehouse is permanent. They do not review it every three years.

However, if you choose to pay down part of it, they top it up.

Say you pay off €10,000
If the split mortgage is less than 5 years old, AIB pays a 42% bonus on any money paid off the warehouse.
So they are then writing down the warehouse by a further €4,200

(AIB calls it 30% because they are grossing it up. 30% of €14,200 = €4,200 )

If the split mortgage is over 5 years old, the top up is 25% ( Grossing up 20%)
 
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